Oil Prices Extend Gains Amid Trump's Iran Exit Signals and Gulf Tensions

Crude oil prices extended their upward trajectory as traders grappled with escalating violence in the Persian Gulf and signals from U.S. President Donald Trump that the United States may be preparing to exit the Iran conflict. The Strait of Hormuz, a vital global oil transit route, remains largely closed, amplifying concerns over energy security and global trade. Brent crude for June delivery rose 1.5% to $105.56 per barrel, following a historic 60% surge in March, the strongest monthly performance since records began in 1988. U.S. crude for May delivery climbed 1.5% to $102.92, with March's 51% rally marking the best month for West Texas Intermediate since May 2020. The recent volatility in oil markets has been driven by a combination of military actions and geopolitical uncertainty. On Wednesday, Iranian drones targeted fuel storage tanks at Kuwait International Airport, sparking a large fire and causing significant damage, according to local media reports. The ongoing U.S.-Israeli military campaign against Iran has disrupted energy supplies since the conflict began on February 28, raising fears of broader economic repercussions. Iran has effectively halted oil shipments through the Strait of Hormuz, a critical waterway that previously accounted for 20% of global oil flows. President Trump indicated on Tuesday that U.S. military forces could withdraw from Iran within 'two or three weeks,' signaling a potential shift in the conflict's trajectory. 'We leave because there's no reason for us to do this,' Trump stated, dismissing the need for a negotiated settlement. He also claimed to have prevented Iran from acquiring a nuclear weapon. However, analysts remain skeptical about the implications of a U.S. withdrawal. Michael Feller, co-founder of the think tank Geopolitical Strategy, noted that leaving now would 'admit defeat' and that further destruction of civilian infrastructure would likely 'drive up oil prices even more.' Iran's Revolutionary Guards announced plans to target U.S. companies in the region, naming 18 firms including Google, Microsoft, Apple, Intel, IBM, Tesla, and Boeing. Meanwhile, Iranian Foreign Minister Abbas Araghchi denied reports of formal negotiations with the U.S., stating that communications remain limited to message exchanges through diplomatic channels. The White House has scheduled a national address by Trump on Wednesday evening to provide an 'important update' on the Iran situation, adding to the uncertainty surrounding the conflict's resolution.